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Tuesday, August 20, 2019

Insurance News

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Ships from Venezuela can still transit Panama Canal

The Panama Canal will allow vessels coming from Venezuela to transit the waterway provided they present the necessary paperwork, the canal authority's chief said on Wednesday, suggesting a new round of U.S. sanctions on the South American country may not make any difference to canal traffic.President Donald Trump's administration last week issued an executive order freezing all Venezuelan government assets in the United States. Shortly thereafter, U.S. officials ratcheted up threats against companies that do business with Venezuela.The measure did not explicitly place sanctions on non-U.S.

File Image: A cruise vessel passes through the Panama Canal. CREDIT: ACP

ICS Weighs in on Proposed Panama Canal Tolls

Global Shipping Industry Delivers Comments to Official Consultation on Proposed Modifications to Panama Canal Tolls.The Panama Canal Authority (ACP) is conducting a public consultation on a proposal to adjust the Panama Canal tolls for containerships, vehicle carriers, dry bulk carriers, tankers, chemical carriers, LPG and LNG vessels, passenger vessels and small vessels. The proposed new toll charges are anticipated to enter into effect on 1 January 2020, the same day as the IMO ‘Global Sulphur Cap’ regulation.

Interferry CEO Mike Corrigan explains why the global trade association is poised to take its work to the next level.

Interferry Charts a Course for Growth

Interferry CEO Mike Corrigan explains why the global trade association is poised to take its work to the next level.While I respect the mantra of cautious optimism, I can’t help feeling genuinely excited that 2019 could prove to be a milestone year in the continuing growth of Interferry’s influence as the global voice of the ferry industry. We’ve come a long way since our US origins in 1976 as what was essentially a networking movement, but developments in recent months already suggest we are on course for yet more enhancement of our present-day worldwide networking and lobbying relationships.

Grace 1 remains impounded, not because of its flag but because it was suspected of taking oil to Syria in breach of EU sanctions, an allegation that Iran denies. Image Credit: © MarineTraffic.com

INSIGHTS: Noose Tightens Around Iranian Shipping

Somewhere on its journey from the waters off Iran, around Africa's southern tip and into the Mediterranean, the Grace 1 oil tanker lost the flag under which it sailed and ceased to be registered to Panama. Iran later claimed it as its own.The ship carrying 2 million barrels of Iranian crude was seized by British Royal Marines off Gibraltar, raising tensions in the Gulf where Iran detained a UK-flagged ship in retaliation.Grace 1 remains impounded, not because of its flag but because it was suspected of taking oil to Syria in breach of EU sanctions…

File Image: AdobeStock / © Seafarer81

War Risk Costs Impact UAE Bunkers, Singapore benefits

Shippers trying to minimise time in the Middle East after oil tanker attacks pushed up insurance costs are scaling back purchases of marine fuels from the United Arab Emirates' (UAE) Fujairah oil hub, trade sources said.Instead, they are turning primarily to Singapore, the world's top refuelling hub, to buy marine fuels, also known as bunkers, with some diverting to smaller bunkering ports, including in India and Sri Lanka, the sources said.A tonne of 380-centistoke (cst) high…

File Image: AdobeStock / © Taras

Unarmed Guards Deployed to Navigate Gulf

Shipping companies are hiring unarmed security guards for voyages through the Middle East Gulf as an extra safeguard after a wave of attacks in the region, security companies involved said.Relations between Iran and the West are increasingly strained after Britain seized an Iranian tanker in Gibraltar this month. Britain also said last week that one of its warships had to fend off Iranian vessels seeking to block a UK-owned tanker from passing through the Strait of Hormuz.As the risk of escalation grows…

Pic: MOL

MOL Sets Terms of Green Bonds

Japanese shipping major Mitsui OSK Lines (MOL), the first company in Japan to issue sustainability bonds aimed at individual investors, has revealed interest and investor details of its new JPY 20bn ($185.7 million) “sustainability bonds” to fund its latest green initiatives.The funds raised will be used for several purposes, including establishing a maritime academy in the Philippines and installation of environmentally friendly equipment or scrubbers on board its vessels. The new bonds will be offered to both institutional and individual investors.

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Freight Volumes Impacted by World Economy

Freight volumes in the United States and around the world are falling, signalling tougher times for manufacturers amid escalating trade tensions and heightened uncertainty.Freight volumes in the United States were up by just 0.8% in the three months from March to May compared with the same period a year earlier, according to the Bureau of Transportation Statistics.Volumes fell year-on-year in May, for the first time in more than two and half years, according to the agency's transportation services index.Freight is growing at the slowest rate since the mid-cycle slowdown of 2015/16…

Captain Andrew Kinsey, Senior Risk Marine Consultant with Allianz Risk Consultant (ARC)

Shipping Losses Lowest This Century as New Dangers Emerge

The Allianz Global Corporate & Specialty AGCS) Safety & Shipping Review 2019 provides a unique and in-depth look at the emerging risks facing international shipping stakeholders.Large shipping losses are now at their lowest level this century having declined by over 50% year-on-year, according to Allianz Global Corporate & Specialty SE’s (AGCS) Safety & Shipping Review 2019. The annual study analyzes reported shipping losses over 100 gross tons (GT). AGCS provides global marine and shipping insurance for all types of marine risk…

FMC Issues Notice to Passengers on Cuba Itineraries

The Federal Maritime Commission (FMC) is aware that passenger cruise lines that called Cuba have amended itineraries to comply with amendments made to the Cuban Assets Control Regulations announced in the Federal Register on June 5, 2019.Passengers with questions related to a voyage they have booked should contact their travel agent and/or cruise line directly.Cruise passengers should always carefully read their ticket contract, which states the cruise line’s obligations with respect to canceled voyages.

Photo: MBL

MBL Wins MIT Solve Challenge

Maritime Blockchain Labs (MBL) and BLOC participated in Massachusetts Institute of Technology's (MIT) Solve challenge, where tech entrepreneurs to address the world’s most pressing problems."BLOC and MBL participated in the challenge on coastal communities on how to mitigate and adapt to climate change while developing and prospering," said a press release."We are extremely proud to be part of the Solver class of this challenge, and are looking forward to the future collaboration with MIT…

Chart: BIMCO

BIMCO: VLCC Freight Rates from Gulf to China Doubles

VLCC spot freight rates between the Arabian Gulf and China rose 101% in the days between June 13, 2019 and June 20, 2019, in the aftermath of attacks on two tankers in the Strait of Hormuz. Spot freight rates for a VLCC, carrying 2 million barrels of oil, between the Arabian Gulf and China reached USD 25,994 per day on June 20, their highest level since March and significantly above the May average of USD 9,979 per day.Despite this increase, freight rates on this route only narrowly exceeds the daily break-even costs of a VLCC…

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Cyber Risk Management: What Maritime Professionals Need to Know Now

The IMO January 2021 deadline for shipping interests to incorporate cyber risk management into their existing Safety Management Systems is fast approaching. It is critical that stakeholders understand their vulnerabilities. The IMO has issued MSC-FAL.1/Circ.3 guidelines on maritime cyber risk management that does a good job of outlining the many vulnerable systems within marine operations, including:1.Bridge systems;2. Cargo handling and management systems;3.Propulsion and machinery management and power control systems;4.

Photo Credit: International Propeller Club of the U.S.

Propeller Club Promotes Relationship with Congress

In his role as the new Executive Vice President of the International Propeller Club of the United States (IPCUS), John Cullather, is setting a course for the 50 American-based clubs, specifically, that involve streamlining and improving communication between ports and maritime policy issues and members of Congress.“Congress has played a vital role in U.S. ports since the founding of our nation,” says Cullather. “From the dredging of our harbors to the construction of lighthouses and the installation of aids-to-navigation…

Logo: OSM

OSM Maritime Launches OSM ON

Ship management company OSM Maritime has launched a portfolio of ‘industry first services’ with the introduction of OSM ON. The new product will be offered to a customer base that not only includes owners, but also insurance companies, financial institutions and brokers. It utilizes the company’s recently opened Maritime Operations Center in Singapore – which digitally connects all vessels under OSM management, and all activities with real-time visibility and transparency – to provide 24/7 response and risk management support services.

Image CREDIT: AdobeStock / © Jose Gill

Japan Oil Industry Braces for Higher Middle East P&I Costs

The costs of buying crude oil from the Middle East could rise as war insurance for ships travelling in the region will be expanded to include vessels travelling off the United Arab Emirates and Oman, the head of Japan Petroleum Association said on Friday.Japan is the world's fourth-largest oil importer and imports 90% of its crude from the Middle East, government data showed.Asian shippers and refiners had put ships heading to the Middle East on alert and were expecting a possible rise in marine insurance premiums following attacks on Saudi oil tankers and pipeline facilities earlier in May.Ta

Richard Cornah  (Photo: Association of Average Adjusters)

New Chairman for Average Adjusters Group

Willum Richards hands over chairmanship of the Association of Average Adjusters on its 150th anniversary to Richard Cornah.The Association of Average Adjusters, set for a memorable 150th anniversary after launching the celebrations at its annual general meeting on May 9, 2019, has chosen a new chairman.Willum Richards announced that on the expiry of his two years in office he was handing over the chairmanship to Richard Cornah, one of the profession’s most authoritative personalities.Liverpool…

A typical fleet oiler in support of U.S. Naval operations (CREDIT: USN)

London P&I clubs Widen Middle East Threat Zone

London's marine insurance market has extended the list of waters deemed high risk to include Oman, the United Arab Emirates and the Gulf after ship attacks off Fujairah, officials said on Friday, in a move that could push up premiums.The London insurance market's Joint War Committee said in a statement that the additions cover areas of perceived enhanced risk for marine insurers and reflected enhanced regional risk."The situation will be kept under close review," said the Joint War Committee…

Robert Joore Managing Director Total Lubmarine. Photo: Greg Trauthwein

IMO 2020: Total Lubmarine 'Road Show' in NYC

On Thursday, May 9, 2019, Total Lubmarine brought its "Total Global Sulfur Cap Forum" to New York City, a meeting including of Total Lubmarine business and technical executives and shipowners.The event, held aboard the historic Aircraft Carrier Intrepid Museum, gathered a full-house of local shipowners, and New York was the sixth stop on an 11 city world 'road show' of the forum to deliver insight on the soon-to-be-implemented fuel rules from the International Maritime Organization (IMO)…

TECH FILE: Container exchange: matchmakers for lonely containers

Avoid empty container moves and save environmental costs in shipping.It is an all too common scenario in container logistics: A carrier has 100 empty boxes in Hamburg that must be transported to China for export cargo. None of the carrier’s northern European customers’ needs these containers to ship goods to China. So, the carrier must pay USD $500 per container (mainly fees charged by terminals and trucking companies), to transport its empty boxes from Hamburg to Shanghai.On average, the CO2 emission per container handled from China to Europe amounts to 1.913 kg.

AdobeStock / © arsel

INSIGHTS: Transportation Industry Outlook 2019

The driver shortage will once again shape the trucking industry in the coming year. For ocean shipping, that’s a real problem. Any transport mode is only as good as the one that immediately follows or precedes it in the intermodal supply chain.For trucking, the outlook hasn’t changed much in the last two years: Too much freight and not enough drivers to haul it. It’s both the best and worst of times all at once. True, this means the U.S. economy is still very healthy. But, it also means that carriers struggle to recruit and retain quality drivers – and that can be frustrating.

Ports Part of Solution, Not the Problem - BPA Chair

Martin Lawlor, Chief Executive at the Port of Blyth and Chair of the British Ports Association: "Ports part of the solution, not the problem on a range of challenges facing the UK."A record turnout of over 300 guests gathered in London today for the British Ports Association’s annual lunch and AGM, which struck an optimistic tone about the role of ports in supporting a range of economic and environmental goals.Maritime Minister Nusrat Ghani MP, speaking at the lunch, said: “Ports are key to the vitality of the UK economy – underpinning regional and national growth.

File Image: A P&O Ferry / Credit P&O

Cancelled Ferry Contracts Renew Push for Grayling's Resignation

Britain's transport minister was under fresh pressure to resign after the government stacked up a 50 million pound ($65 million) loss for cancelling contracts to charter extra ferries to bring in essential supplies in the event of a no-deal Brexit.The decision to award the contracts has been a major political embarrassment after it emerged the government handed out a 14 million pound contract for extra ferries to a company that owned no ferries and published terms and conditions on its website that appeared to be for a takeaway food business.Then…

Engine Room Wall (Photo: Advanced Mechanical Enterprises)

'Sea the World' Reveal At Huizenga Center

South Florida’s marine industry is a $12 billion/year economic engine that provides the region with 142,000 careers and jobs. With an aging workforce and a unique skill set, the maritime community is facing a workforce that’s aging out with skilled labor being very hard to find. To assist, Advanced Mechanical Enterprises/AMESOLUTIONS.COM, and 23 marine industry companies have joined forces with Junior Achievement of South Florida.On May 1, 2019, Junior Achievement of South Florida will unveil the Marine Industry Storefront…

File Image: AdobeStock / © Nightman 1965

Customs Demands Bigger Bonds as Tariffs Bite

Stephen Wang is counting the costs of President Donald Trump's trade war. He had to put down 12 times more cash as a guarantee to U.S. customs that he would pay the bill for tariffs on the Chinese-made pumps, valves and motors he imports.The cost of the guarantee - a U.S. customs bond - has shot up, an additional hit to importers already facing steep customs bills adding up to tens of billions of dollars for tariffs imposed by the Trump administration on incoming Chinese goods…

American Club: Four Senior Appointments

Shipowners Claims Bureau, Inc. (SCB), Managers of the American Club, has announced several senior appointments which have been made to enhance the capabilities of its global service teams.At the Club’s headquarters in New York, Margaret Lee has been appointed as Lead Counsel. With 20 years of experience in the industry, Lee is a New York-admitted attorney who worked in private practice before joining the Club’s management several years ago. Lee has particular expertise in occupational disease claims and…